What defines a country is its quality of employment, the standard of living, relative poverty, and many other factors. When these factors work accordingly then it makes up for the complete economic system of a country. Every country tries best to increase its resources and the proper utilization of those resources. The amount of taxes upon each commodity, the low or high GDP, all this is maintained to main a proper economy and better living conditions of the citizens of the country.
Startups and Their Major Types
A startup is a company in the first stage of its operations. It is often financed by its entrepreneurial founders during the initial starting period. The company can continue to gain more financial aid through various investments.
All the countries invest and establish numerous startups, businessmen initiate various organizational sectors for growth and enrichment. Not only in their own respective countries, but they also start developing in other countries as well.
The types of business or startups can be of the following types:
Food and Beverages
Clothes and accessories
Medicines(mainly of Ayurveda and Alternative medicines whose plants or extracts are found outside the country)
Corporation setups
For better insights, we can take examples of the companies of India like Quechua, Wildcraft, McCain which are all non-Indian companies but now has startups in India too. India holds business and economical relationships with many countries.
For the context of this article, we will be discussing the economic relationships between India and Singapore which are quite well maintained through ages. This relationship continues to prosper, now we have to understand why. Now let’s look at some facts and figures for India and Singapore.
Understanding the Startup Ecosystem in India and Singapore
1. Indian Startup Ecosystem
After steady growth in 2018 and 2019, the Indian startup ecosystem was expected to remain stable in terms of funding and investor interest in 2020 too. But the pandemic has changed the game completely in several aspects. In this light, by 2025, the number of startups in India is expected to cross 100K, creating more than 3.25 Mn jobs in the process.
It is the second-largest startup ecosystem.
There are approximately 20,000+ startups in India.
There has been a total valuation of $50 Billion.
There are approximately 10,000+ startups in Singapore.
There has been a total valuation of $11 Billion.
Singapore has the availability of top talents.
Why Singapore chooses India over any other country?
India has been ranked as the most affectionate market by the up leading investors because the economy of India is growing at a fast rate.
India is assumed to have the largest youth population in the year 2020.
Through the estimations, private consumption is ought to be seen four times by 2025 because it has a huge domestic market.
It has been estimated for India to have a greater economic influence over the Asian- Pacific region. So, it has a rising economic influence.
India records for improvement in the ease of doing business which ranked from 142 to 100 in the span from 2014 to 2017. It has a business-friendly environment.
Why India chooses Singapore over any other country?
Singapore is seen as one of the most competitive economies globally. The economic strength is quite high.
One of the most conductive and efficient environments for business.
It has a supportive government initiates and the startups or business policies give funding support.
Singapore stands for one of the strongest intellectual property rights protection programs for companies in the world.
The corporate tax rates are pretty attractive for the countries around with suitable tax exemption for startups. It has some favorable tax regimes also.
Singapore as a Promising Economic Relative with India
Recently, a vast wave of Indian technological startups has tried to hit the shores of Singapore. They have either relocated to Singapore or established new incorporation there. For a better understanding, Flipkart, Milaap, Mobikonb, Medialink are some of the popular names of the Indian technological startups that have chosen to have Singapore as their second home.
Singapore has been considered as the most ideal location because of the Silicon Valley in the western hemisphere, it has been a great attraction for such startups. Singapore is well efficient and meets and exceeds any of the needs of any of the startup. It has already been gaining a strong name and reputation as a startup hub in the eastern hemisphere. More of the Indian startups with varying international market aspirations are being bound to set up shops in Singapore because of the credibility it holds in every aspect.4
Overall, 64% percent of respondents plan to enter India or start expanding their business. The ones already in India, 82% of them plan to expand here. The sign-up of an agreement in July 2005 has strengthened business relations ties between India and Singapore. Following the similar pact, the bilateral pact of last year winged past around $13 Billion. It has been found that 52 percent of the companies without even operations in India intends to enter the market as reported by the survey commissioned by International Enterprise Singapore, the city- state’s trade body.
In 2018, India and Singapore signed a defense pact which was highly beneficial for both the nations. Read more: The Defence Pact of India and Singapore
Bottom Line
Bilateral relations between the Republic of India and the Republic of Singapore has been traditionally strong and friendly, with the two countries enjoying extensive cultural and commercial relationships. India and Singapore have signed the Comprehensive Economic Cooperation Agreement (CECA) and also the strategic- relationship agreement in order for increasing trade, investments, and economic cooperation, and expanded bilateral cooperation. According to a 2010 Gallup poll, 40% of citizens of Singapore ought to approve India’s leadership, with 23% disapproving and 37% of uncertain stands.
Read more: Startup Incubators
Written By - Pavas Shrigyan
Edited By - Neha Kundu
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